Central bankers warned: small and micro enterprises may fall into the financial trap of e-commerce platform.

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 Central bankers warned: small and micro enterprises may fall into the financial trap of e-commerce platform.


Recent research and development has found that e-commerce platforms continue to lengthen the cycle of accounts payable and exacerbate the financial constraints of small and micro enterprises. On November 17, Xu Zhong, Director-General of the Research Bureau of the Peoples Bank of China, said at the Global Financial Science and Technology (Beijing) Summit 2018 held by the Forty Peoples Forum on Finance of China on November 17 that the strong position of big technology companies relative to their customers when they enter the financial field may distort their cooperative relationship.

With the development of global financial science and technology, when large technology companies penetrate into the financial field, they can form scale effect and strong market dominance by virtue of their own customer resources, capital strength and technical ability. Through cooperation with banks, they can promote the development of inclusive finance.

However, when large technology companies enter the financial field, there are also some issues worthy of attention, which need to balance innovation and risk prevention.

He pointed out, for example, that e-commerce platforms create demand for their own financial business, which may increase the operating costs of small and micro enterprises through fee-charging projects, and abnormally increase the financing needs of small and micro enterprises. In extreme circumstances, small and micro enterprises may fall into the financial trap of e-commerce platforms.

In addition, large technology companies use technological innovation advantages, such as big data technology and artificial intelligence algorithms to collect and analyze non-financial data, which can improve the efficiency of risk assessment, credit supply and pricing, and enhance user experience. But it may also lead to homogeneous competition because of the similarity between computing model and business model, and it may also lead to pro-cyclical problems.

Earlier this year, the biggest data leak in Facebooks history attracted global attention, which showed that big technology companies were overcollecting customer data and could violate customer privacy.

He believes that some technology companies take advantage of technological advantages to seize the market and mix user data with different product lines, which makes privacy protection more difficult. This phenomenon has not occurred in China. During the period of rapid growth of cash loans in China from 2016 to 2017, borrowersinformation trading occurred. In addition, some Internet enterprises use customer personal information (such as gender, geography, occupation, etc.) for credit evaluation, and make loans according to these indicators, which may also involve discrimination against certain groups.

In terms of regulation, big technology companies are involved in the financial field, on the one hand, because of their advantages in platform, technology, customers and data, and on the other hand, because of the relatively loose supervision, for example, in payment, asset management and other fields, big technology companies can enjoy inequality because of the inconsistency of regulatory standards. Unfair competitive advantage. Xu Zhong believes that in order to avoid the risk from small to not worthy of attention to evolve into large and can not be ignored, the financial supervision of large technology companies should be real-time intervention.

In his speech, he paid special attention to the impact of large technology companies on financial stability and systemic risk in the development of financial technology.

On the one hand, financial technology improves the convenience of customers and economic benefits, but at the same time, it also puts pressure on the operation of existing financial institutions. It will affect some small and medium-sized financial institutions, such as traditional small and medium-sized banks relying on relationship-based financing, to seize their customers, so that these financial institutions face risks and thus increase their funds. The risk of stability.

On the other hand, with the advantage of network effect, financial technology companies may cause a high degree of market concentration. If the operation fails or network security incidents occur, it is more likely to cause systemic risks. At the same time, if financial institutions rely heavily on third-party data services such as cloud computing, they will also increase the risk of externalities. In the case of highly centralized cloud services, once attacked by the network, it may also form a systemic financial risk. To promote the healthy development of financial science and technology, Xu Zhong believes that at least four relationships need to be grasped: first, scientific and technological innovation is important, but scientific and technological innovation can not represent the system. In the process of technological development, we need to improve the relevant legal supervision system. The two is to deal with the relationship between innovation and regulation. Under the current irreversible trend of financial science and technology development, financial supervision needs to consider how to promote innovation and prevent risks. Thirdly, when financial technology companies are using big data more and more, they should deal with the relationship between the efficiency of data use and privacy protection. The four is the development of financial risks in the light of the development of financial technology. (Zhang Jilong) the source of this article: editor of Wall Street news and responsibilities: Wang Fengzhi _NT2541

On the other hand, with the advantage of network effect, financial technology companies may cause a high degree of market concentration. If the operation fails or network security incidents occur, it is more likely to cause systemic risks. At the same time, if financial institutions rely heavily on third-party data services such as cloud computing, they will also increase the risk of externalities. In the case of highly centralized cloud services, once attacked by the network, it may also form a systemic financial risk.

In order to promote the healthy development of financial technology, Xu Zhong believes that at least four aspects need to be grasped.

First, technological innovation is important, but technological innovation can not represent the system. In the process of technological development, we need to improve the relevant legal supervision system.

Thirdly, when financial technology companies are using big data more and more, they should deal with the relationship between the efficiency of data use and privacy protection.

The four is the development of financial risks in the light of the development of financial technology. (Zhang Jilong)